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Financing An Acquisition
Financing An Acquisition
Financing An Acquisition
Acquisition
Financing an Acquisition
• Merger and Acquisition
deals need to be
financed
• Often the role of the
advising Investment
Bank to the buyer
• Financed with Equity or
Debt
Financing an Acquisition
• Cash or Stock
• Bank Debt/Loans
• Combination of Debt and Equity
Financing
• Debt Financing - can be a
combination of loans with different
terms
• Senior
• Junior
• Mezzanine
Financing an Acquisition
• Sources
• Existing assets of the
buyer
• Existing Shareholders -
new shares
• Banks
• Third Party Financial
Investors - Private Equity
Financing an
Acquisition